Delivery Hero announced that it has reached several major milestones on its path to profitability as it releases its Q2 2023 Trading Update. Most significantly, the Group achieved positive adj. EBITDA in H1 2023, with a positive EBITDA/GMV margin of 0.2% in Q2 2023 after group cost allocation.
Overall GMV growth accelerated to 8% YoY, exceeding original expectations of 4% YoY, and the Group GMV outside of Asia recorded double-digit growth of 18% YoY. The Asia segment also returned to positive GMV growth at 2% YoY, despite tough comparable numbers. Total Segment Revenue growth hit 16% YoY. Accordingly, the company has updated its Total Segment Revenue outlook for FY 2023, expecting an increase of around 15% YoY (up from around 10% YoY^1 in its previous guidance).
Niklas Östberg, CEO and Co-Founder of Delivery Hero, said: “Our team has executed another fantastic quarter, with significant improvements in both consumer and rider products. As a result, we’ve seen an acceleration in YoY growth in Q2, as well as an improvement in category leadership. We achieved this while still hitting the milestone of a positive adj. EBITDA on Group level.”
The Integrated Verticals segment recorded a strong GMV growth of 26% YoY this quarter, and the Dmart business achieved positive Gross Profit in
June, ahead of guidance. This was due to healthy volume growth, larger shopping baskets and improved cost efficiency, demonstrating strong potential for the model.
Emmanuel Thomassin, CFO of Delivery Hero, said: “I’m very pleased that the progression made towards our profitability goals at the start of the year has materialized in Q2. A particularly significant result was that our Dmarts achieved positive Gross Profit for the first time, ahead of previous guidance. As we continue optimizing our operations and sharing key learnings on a global scale, we are unlocking the valuable potential they can have across the business going forward.”
While marching towards profitability, Delivery Hero maintained its commitment to environmental and social programs. Key initiatives include piloting electric vehicles, upskilling over 56,000 merchants, expanding sustainable packaging, and financing tech boot camps for women.